Recently, this wave of Ethereum market movements looks like a trap, and it might really be a trap—prepared for the bagholders.

Let's look at the big picture. Morgan Stanley, the giant managing $1.6 trillion, has recently officially submitted an application for an Ethereum ETF. What was the market's reaction? Instead of rallying, it took a nosedive, dropping from $3300 directly to around $3165. Just thinking about this is interesting—good news paired with a downward trend usually implies what?

On-chain data gives us the answer. While retail investors are still trembling in front of the charts, large institutions like BitMine have staked a total of 590,000 ETH within just 8 days, worth over $1.8 billion. What are they doing? They’re taking advantage of the dip to buy low, then locking in the position to enjoy an annualized yield of 3.5%, while preparing for the next rally. What is this called? It’s a planned bottom-fishing strategy.

Now, let’s look at the technical details. That $3300 level is like a clear signal now in hindsight. From that point down to the current $3165, the key support is right between $3050 and $3100. Many think it will continue to fall, but from a different perspective, who was shaken out during this correction? The short-term traders who chased the high above $3200. By clearing out these traders and with the positive news of the ETF, a neat consolidation of chips is happening—this is the market logic.

So, the question now isn’t whether to run or not, but whether your chips are being sold cheaply now, or if you should wait until others have accumulated enough before bouncing back?

What do you think about this correction? Is it a buying opportunity or just a pause before further decline? Share your thoughts.